Lexington believes that a commitment to strong Environmental, Social, and Governance (ESG) policies and practices can create lasting value, enhance performance, and create alignment with investors, employees, and underlying sponsors. We are focused on operating at the highest standard of corporate governance, contributing meaningfully to the sustainability of our communities, advancing initiatives to promote diversity, equity, and inclusion (“DEI”), and increasing awareness of ESG issues among a broad and diversified group of underlying sponsors in our investment funds. We have integrated ESG factors into our secondary and co-investment investment processes and believe that consideration of ESG principles during due diligence is essential in anticipating and mitigating risk.
Responsible Investment Policy
Lexington defines responsible investment as a strategy and practice to incorporate environmental, social and governance (“ESG”) factors in our investment process and monitoring. Lexington fully supports the mission and ideals of the Principles for Responsible Investment (“PRI”) and is aware that ESG issues can affect the value of investment portfolios. Lexington considers a variety of factors when making investment decisions on behalf of the funds that it manages and recognizes that ESG risks are valid parts of the investment analysis and decision-making processes. We are conscious that as ESG policies and regulations become more widely promulgated, it is likely that the underlying companies that are better positioned to embrace the aspirational aims of the PRI will be less affected financially in the future. In addition, we consider it our responsibility to provide transparency to our Clients and investors regarding our approach to incorporating ESG principles into our investment process.
While our fundamental due diligence process as to consideration of ESG risks remains the same, Lexington’s secondary and co-investment funds ask for information regarding ESG factors from the sponsors with which we invest and we record ESG responses as part of our investment due diligence process. In addition, once an investment is made by Lexington’s secondary funds, we conduct a periodic survey of sponsors inquiring about their ESG policies and approach. We believe our commitment to surveying and reporting findings anonymously and in the aggregate to both participating sponsors and our funds’ limited partners demonstrates Lexington’s commitment to creating awareness among a highly diversified portfolio of sponsors regarding ESG best practices and to providing assurances to our limited partners about ESG adoption within the Lexington secondary funds.
Diversity, Equity, and Inclusion
At Lexington Partners, we believe a talented workforce possessing a wealth of diverse experiences, skills, and perspectives contributes to enhanced decision making, strong performance, and a rich firm culture. We are committed to fostering an inclusive work environment that welcomes and celebrates differences and encourages input from all perspectives. Spearheaded by our Diversity, Equity, and Inclusion (“DEI”) Committee, we strive to strengthen Lexington’s core values by attracting, retaining, and advancing diverse talent and engaging with the communities in which we live and work.
Lexington is an equal opportunity employer that has zero tolerance for any form of discrimination. We strive to create a safe work environment where all individuals are treated with dignity and respect and are accorded equitable career development opportunities. We strongly advocate for and encourage open and honest dialogue throughout the firm to ensure that Lexington remains at the forefront of contributing to positive, enduring social change.
Please find our EU Sustainable Finance Disclosure Regulation (the “SFDR”)” disclosures here: